Crypto funds snap outflow streak with $1bn inflows amid Middle East strikes
Crypto funds demonstrated remarkable resilience this week as investment products recorded $1.06 billion in net inflows, effectively terminating a grueling five-week stretch of $4.0 billion in outflows.
- Despite the US-Iran conflict, $1.06 billion in inflows ended a month-long $4.0 billion outflow streak as institutions bought the technical reset.
- Bitcoin led the recovery with $881.5 million in inflows, though $3.7 million in short-BTC positions highlights lingering caution over regional instability.
- Solana remains the year-to-date leader in altcoin inflows at $156 million, while Ethereum posted its best weekly performance in nearly two months.
Crypto funds see $1 billion resurgence
This pivot comes at a critical juncture for global markets as the escalating US-Iran conflict has introduced severe geopolitical instability following military strikes in late February 2026.
While the broader market context remains defensive due to these tensions, institutional sentiment was buoyed by recent price weakness and technical resets, which large-scale holders interpreted as an attractive entry window.
Regional participation was overwhelmingly positive, with the United States accounting for $957 million of the total inflows despite the geopolitical headwinds. Other key markets including Canada, Germany, and Switzerland also saw continued interest, contributing a combined $94.2 million.
Bitcoin (BTC) remained the primary beneficiary of this trend, capturing $881.5 million in weekly inflows.
However, the market remains polarized as evidenced by $3.7 million flowing into short-bitcoin products, suggesting that a segment of investors is still hedging against potential downside risks linked to the ongoing conflict in the Middle East.
Ethereum saw a significant resurgence with $116.9 million in inflows, its strongest performance since mid-January, indicating that institutions are looking past short-term volatility toward long-term value.
In the altcoin sector, Solana continues its dominant streak, attracting $53.8 million last week and bringing its year-to-date inflows to $156 million. Chainlink also recorded minor interest with $3.4 million in inflows.
The strong institutional activity suggests that while geopolitical events like the US-Iran strikes create short-term fear, the “smart money” is utilizing the resulting price resets to rebuild positions in core digital assets.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
VIPCross-Asset Positioning Amid AI Earnings Scrutiny and the US Election
1. Markets diverged during the week. Between the October 23 and October 30 closes, BTC fell 4.78%, the Nasdaq 100 declined 1.98%, and gold and silver dropped 2.72% and 8.59%, respectively. The DAX, KOSPI, Nikkei 225 and Hang Seng advanced. We focus on differences in growth prospects, valuation sensitivity and risk exposures rather than applying a single directional view across assets. 2. Market reactions to Alphabet's and Intel's earnings brought returns on AI investment into focus. Attention is shifting from the scale of capital expenditure to revenue realization, margins and free cash flow. Lower interest rates can ease discount-rate pressure, but a sustained valuation recovery still requires support from both operating performance and financing conditions. 3. The November 3 US midterm elections and November 6 employment report are key events in the coming week. We monitor how post-election fiscal and legislative agendas may affect interest rates, the dollar and industry operating conditions. Our execution priorities are to manage leverage and concentration, retain margin and exit-liquidity buffers, and avoid treating a single political outcome as an automatic trading signal. 4. Following Binance's disclosure of a security incident, industry attention to endpoint protection, access segregation and coordinated incident response has increased. Key assets to monitor: BTC, the Nasdaq 100, crude oil and gold, alongside upcoming earnings from AAPL, AMD, PLTR, ARM, ANET and QCOM.

HYATT HOTELS CORP <H.N>: JEFFERIES RAISES TARGET PRICE TO $188 FROM $167
Italgas Raised to Buy From Hold by Berenberg
BANCORP INC <TBBK.O>: KBW CUTS TARGET PRICE TO $56 FROM $65
